FINANCIAL MANAGEMENT AND ACCOUNTABILITY AMENDMENT REGULATION 2012 (NO. 6) (SLI NO 206 OF 2012)

The Financial Management and Accountability Act 1997 (FMA Act) provides a framework of rules for the proper management of public money and public property by Chief Executives and officials of FMA Act agencies.

Subsection 65(1) of the FMA Act provides that the Governor-General may make regulations prescribing matters required or permitted by that Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to that Act.

The Regulation amends the Financial Management and Accountability Regulations 1997 (Principal Regulations) to add 3 existing Government programs to Part 4 of Schedule 1AA and amend 6 existing program descriptions in Part 4 of Schedule 1AA to ensure that there is legislative authority for spending on the activities conducted under those programs.

To respond to the High Court decision in Williams v Commonwealth [2012] HCA 23, the Financial Framework Legislation Amendment Act (No.3) 2012 established legislative authority in section 32B of the FMA Act for the Government to spend on the grants and programs listed in Schedule 1AA of the Principal Regulations. That Act also established a 60 day transitional period during which time existing Government spending programs could be added or clarified in Schedule 1AA and provide retrospective authority for spending. The transitional period ends on Monday 27 August 2012.

The FMA Act specifies that no conditions need to be met before the power to make the Regulation may be exercised.

The Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003. The Regulation commences on the day after the Regulation is registered on the Federal Register of Legislative Instruments.

In accordance with section 17 of the Legislative Instruments Act 2003, consultation has taken place with the Chief Financial Officer areas of all affected Departments, the Department of Health and Ageing, the Therapeutic Goods Administration and the Australian Public Service Commission. The Australian Government Solicitor also provided advice on the amendments to Schedule 1AA in the Principal Regulations.

A regulation impact statement is not required as the Regulation only applies to FMA Act Agencies, and does not affect the private sector.

The Regulation is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011 (Human Rights Act).

The amendments do not engage any of the rights or freedoms outlined in the Human Rights Act, such as encompassed in the International Covenant on Civil and Political Rights (ICCPR). The amendments do not limit any human rights, nor establish any new offences or penalties.

Authority: Subsection 65(1) of the Financial Management and Accountability Act 1997

ATTACHMENT

Details of the Financial Management and Accountability Amendment Regulation 2012 (No. 6)

Section 1 - Name of Regulation

This section provides that the title of the Regulation is the Financial Management and Accountability Amendment Regulation 2012 (No. 6).

Section 2 - Commencement

This section provides that the Regulation commences on the day after it is registered on the Federal Register of Legislative Instruments.

Section 3 - Amendment of the Financial Management and Accountability Regulations 1997

This section provides that the Financial Management and Accountability Regulations 1997 (Principal Regulations) are amended as set out in Schedule 1.

Schedule 1 - Amendments

Schedule 1 amends the Principal Regulations to amend Schedule 1AA to ensure there is legislative authority for particular Government spending by: adding 3 new programs to Part 4; and amending 6 program descriptions in Part 4 (items 1-5).

Item [1] - Schedule 1AA, item 415.002

This item amends the program description of a Department of Health and Ageing program, Communicable disease control in item 415.002 of Schedule 1AA of the Principal Regulations by replacing it with a broader description to accurately describe and so provide legislative authority to continue spending arrangements under this program.

The Communicable disease control program is part of the program referred to on page 57 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.10, Health and Ageing Portfolio.

Item [2] - Schedule 1AA, item 415.005

This item amends the program description of a Department of Health and Ageing program, National Immunisation Program in item 415.005 of Schedule 1AA of the Principal Regulations by replacing it with a broader description to accurately describe and so provide legislative authority to continue spending arrangements under this program.

The National Immunisation Program is part of the program referred to on page 75 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.10, Health and Ageing Portfolio.

Item [3] - Schedule 1AA, item 415.017

This item amends the program description of a Department of Health and Ageing program, Home Support in item 415.017 of Schedule 1AA of the Principal Regulations by replacing it with a description to better reflect the full scope of the program and so provide legislative authority to continue spending arrangements under this program.

The Home Support Program is part of the program referred to on page 128 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.10, Health and Ageing Portfolio.

Item [4] - Schedule 1AA, item 415.026

This item amends the program description of a Department of Health and Ageing program, Aboriginal and Torres Strait Islander Health in item 415.026 of Schedule 1AA of the Principal Regulations by replacing it with a broader description to reflect the full scope of the program and so provide legislative authority to continue spending arrangements under this program.

The Aboriginal and Torres Strait Islander Health Program is part of the program referred to on page 171 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.10, Health and Ageing Portfolio.

Item [5] - Schedule 1AA, items 415.039 and 415040

This item amends the program descriptions for two Department of Health and Ageing programs in Schedule 1AA of the Principal Regulations to ensure that Schedule 1AA more accurately describes the programs and so provides legislative authority to continue spending arrangements under the following programs:

* Public hospitals and information in item 415.039; and

* Health emergency planning and response in item 415.040.

The Public hospitals and information Program is part of the program referred to on page 234 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.10, Health and Ageing Portfolio.

The Health emergency planning and response program is part of the program referred to on pages 43 and 239 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.10, Health and Ageing Portfolio.

Item [6] - Schedule 1AA, after item 415.041

This item adds two Department of Health and Ageing programs to Part 4 of Schedule 1AA of the Principal Regulations, to ensure that there is legislative authority for the Government to make arrangements to spend money under:

* Expanding the roll out of low aromatic fuel (new item 415.042), to reduce the incidence and impact of petrol sniffing in regional and remote communities. This is a spending activity within the Drug Strategy program in the Health and Ageing portfolio; and

* Therapeutic Goods regulatory grants program (new item 415.043), to provide grants for regulatory activities in relation to therapeutic goods. This is a spending activity of the Therapeutic Goods Administration within the Health and Ageing portfolio.

The Drug strategy program is part of the program referred to on page 60 of the Portfolio Budget Statements 2012-13, Budget Related Paper No.1.10, Health and Ageing Portfolio.

Item [7] - Schedule 1AA, after item 430.017

This item adds a program to the Prime Minister and Cabinet portfolio to Part 4 of Schedule 1AA of the Principal Regulations, to ensure that there is legislative authority for the Government to make arrangements to spend money in relation to:

* Australia New Zealand School of Government (ANZSOG) (new item 431.001) to provide funding for ANZSOG's development and the administration of any agreements related to that funding (currently administered by the Australian Public Service Commission).

Commonwealth Numbered Regulations - Explanatory Statements

Details of the Financial Management and Accountability Amendment Regulation 2012 (No. 6)